Consumer Protection Code Review

Chapter 1 of the Consultation Paper sets out why we are undertaking a review of the Consumer Protection Code, and what we want to achieve by updating the existing Code. This chapter also outlines the various factors that helped influence and inform our policy proposals and provides a high level overview of how we are proposing to update the Consumer Protection Code and next steps

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Chapter 2 of the Consultation Paper outlines the principal policy proposals that will be reflected in the revised Consumer Protection Code including:  Securing Customers’ Interests, Digitalisation, Informing Effectively, Mortgage Credit and Switching, Unregulated Activities, Frauds and Scams, Protecting Consumers in Vulnerable Circumstances and Climate Risk.

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Chapter 3 of the Paper sets out some examples of additional policy proposals, outside of the principal policy proposals set out in chapter 2. There are a variety of enhancements proposed to the existing requirements, and in this chapter we outline the more notable of these which include enhancements in the areas of Consumer Credit, SME Protections, Insurance, Investments and Pensions and Miscellaneous Enhancements.

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Chapter 4 sets out the Central Bank’s assessment of the various benefits to consumers and to regulated firms, of the proposed additions and enhancements to the revised Code. Alongside this is an overview of the proposals which are likely to place costs on regulated firms, and our key considerations on the importance of clarity and proportionality in developing the revised Code. 

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Chapter 5 provides details of how to submit your feedback to the consultation and outlines the next steps in the process.

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Annex 1 sets out the legal basis, scope and structure of the revised Code.

This includes an outline of the consolidation exercise that has been undertaken, and an overview of the two guidance documents published as part of the consultation.

Read Annex 1 in full

The new regulations are a consolidation of a number of existing codes and regulations, as well as some enhanced, and some new requirements.

To assist users of the Code in navigating and locating existing and new provisions, an Excel mapping tool has been created, which also contains instructions on how to use the tool.

Open/Download the Excel Mapping Tool

The revised Code is made up of two regulations. The Standards for Business and Supporting Standards for Business (under section 17A of the Central Bank Reform Act 2010), and the General Requirements (under section 48 of the Central Bank (Supervision and Enforcement) Act 2013.

The Standards for Business replicate some of the existing General Principles from the existing Code, and include some additional standards.

The Supporting Standards for Business complement, and provide further detail and clarification on, firms’ obligations under the Standards for Business.

Download the Section 17A Regulations

The revised Code is made up of two regulations. The Standards for Business and Supporting Standards for Business (under section 17A of the Central Bank Reform Act 2010), and the General Requirements (under section 48 of the Central Bank (Supervision and Enforcement) Act 2013.

The General Requirements (section 48 regulations), which make up the body of the revised Code, contain a range of general and cross-sectoral requirements, along with sector-specific requirements, the majority of which reflect the existing requirements, along with some enhancements and some new additions.

Download the Section 48 Regulations

In order to achieve further clarity and predictability for firms around their obligations to secure the interests of their customers, and to protect consumers in vulnerable circumstances, dedicated guidance documents have been produced and will be consulted on as part of this consultation process.

Read the Guidance on Securing Customers’ Interests

Read the Guidance on Protecting Consumers in Vulnerable Circumstances

The Consumer Protection Code is a set of principles and rules that regulated financial firms must follow when they:

• Sell financial products and services to you
• Give you financial information or advice
• Advertise financial products or services
• Handle your complaints.

The Code was developed to protect you as a consumer of financial products and services.

The Code has served consumers well. It has established a strong set of rules and expectations for how firms should treat their customers. And it has allowed us to intervene to protect consumers – such as tackling the banking sector’s mistreatment of tracker mortgage customers, or the unfair treatment of loyal customers in the insurance sector.

However, given the rapidly changing financial services landscape, the Central Bank is now reviewing the Code.

The aim of the review is to modernise the Code to ensure it is fit-for-purpose and continues to protect consumers of financial products today and in the future.

In October 2022, we published a Discussion Paper, seeking views on the issues emerging for consumers in the changing financial services landscape.

An extensive six-month engagement programme with our stakeholders followed, including roundtables, bilateral meetings, and an online public survey.

The response to this engagement programme was very positive and has given us a deeper understanding of the issues facing consumers of financial services.

In July 2023 we published an update on this engagement to share what we have learned so far and what we will do next. We also published the individual responses received to our Discussion Paper, along with the results of an online public survey, which was open on our website between December 2022 and April 2023.

• Discussion Paper
• Consumer Protection Code Review Discussion Paper – Engagement Update
• Submissions received in response to Discussion Paper
• Consumer Protection Code Review Discussion Paper – Public Survey Results

In March 2024, we published a Consultation Paper on the Consumer Protection Code.  The Consultation Paper is an opportunity for stakeholders to provide feedback on how we are proposing to update the Code. After the consultation period, we will consider our stakeholders feedback before publishing the revised Consumer Protection Code alongside a feedback statement outlining our rationale for the updates in the revised Code.

The purpose of our review is to deliver an updated and modernised Consumer Protection Code that reflects developments in financial services over the past number of years so that the Code continues to protect consumers both today and into the future.

The proposals in the consultation paper include:

• Providing clarity for firms on their existing consumer protection obligations.
• Modernising and updating the Code to enhance protections for consumers of financial services today and into the future.
• Consolidating other consumer protection requirements into the Code and converting the Code into regulations to provide an integrated consumer protection framework.
• Supporting consumers and firms in accessing and navigating the Code through the provision of online supports and guides.

Consultation Paper remains open for feedback for three months until 7 June 2024.

Interested parties can make submissions by email to: [email protected] , or by post to Central Bank of Ireland, PO Box 559, Dublin 1.

Following the public consultation, we will consider the feedback from our stakeholders before publishing the final revised Consumer Protection Code alongside a feedback statement outlining our consideration of feedback received.

Further evolution of the Consumer Protection Code

Following completion of the Review and publication of the final regulations, we will continue to consider further enhancements in a number of specific areas. This will allow us to build on changes proposed in this consultation paper, and to develop further changes based on ongoing legislative developments at a domestic and European Union (EU) level that are likely to follow the publication of the revised Code. For example, anticipated changes under domestic and EU legislation relating to access to basic services such as Access to Cash, the National Payments Strategy, the EU Retail Investment Strategy (RIS) and the evolution of the EU Payment Services Framework. At a domestic level, there will also be a consideration in due course of the full application of the Code to credit unions, in order to ensure their members are afforded the same protections as other consumers.